The delinquency rate for mortgages on residential properties of four units or less declined 18 basis points from the fourth quarter to 7.4% in the first quarter, the Mortgage Bankers Association said in its national delinquency survey.

That rate is down 92 basis points from year-ago levels.

Sponsor Content

"Mortgage delinquencies normally fall during the first quarter of the year, but the declines we saw were even greater than the normal seasonal adjustments would predict, so delinquencies are clearly continuing to improve," said Michael Fratantoni, vice president of research and economics for the MBA.

"Newer delinquencies, loans one payment past due as of March 31, are down to the lowest level since the middle of 2007, indicating fewer new problems we will need to deal with in the future," he added.

The percent of loans tied to a foreclosure action launched in the fourth quarter hit 0.96% in the most recent quarter, which is down 3 basis points from the previous quarter and 12 basis points from a year earlier.

By the end of the first quarter, the percentage of loans in the foreclosure process stood at 4.39%, up 1 basis point from the fourth quarter and down 13 basis points from 1Q of 2011.

The serious delinquency rate, or the percentage of loans 90 or more days past due or in foreclosure, hit 7.44% in the first quarter, down 29 basis points from the fourth quarter and 66 basis points from the first quarter of 2011.

The only states to experience increases in their serious delinquency rate were Maryland, Delaware, New Jersey and Washington.

Related Articles

Kerri Ann Panchuk was the Online Editor of HousingWire.com, and regular contributor to HousingWire magazine. Kerri joined HousingWire as a Reporter in early 2011 and since earned a law degree from Southern Methodist University. She previously worked at the Dallas Business Journal.

This month inHousingWire magazine

Eight years after we began recognizing women for their influential work in the expanding housing and mortgage finance ecosystem, a traditionally male-dominated field, our Women of Influence list is bigger and better than ever! This year, we honor 85 women who are making lasting achievements in each sector of the housing economy. Read on to learn more about these accomplished women and the strides they are making in their industry segments.

Feature

The financial world at large is experimenting with changing its workforce culture in ways not fathomable 10 years ago. For example, in 2011, the dress code for female workers at UBS came to light with unflattering results. In it, the Swiss bank instructed female employees on not just how to dress and how to smell, but also preached the importance for ladies to apply lotion after taking showers. Fast forward to today and fellow Swiss bank, Credit Suisse has now created an official role to boost equal opportunities and create a fair treatment environment. Has the American mortgage industry made similar progress?

Commentary

The conversation around student loan debt and its economic impact on Millennials, those born from 1980 to 1998, has some questioning whether the future of the American Dream is in jeopardy. The nation’s student loan debt has soared to $1.4 trillion, surpassing credit cards in becoming the largest source of personal debt outside a mortgage.